COE premiums fall across categories, small car premiums down 8 per cent
SINGAPORE — Certificate of Entitlement (COE) prices fell across all categories at the end of the latest bidding exercise on Wednesday (Feb 21), with the premiums for smaller cars falling by almost eight per cent.
Category A premiums (cars up to 1,600cc and with a maximum power output of 97kW) dipped this round from S$40,000 to S$36,810. Premiums for this category had spiked to S$40,000 in the previous bidding exercise after the Land Transport Authority announced a cut in vehicle growth rates for Categories A, B, and D from 0.25 per cent to zero.
Premiums for larger cars (cars above 1,600cc and 97kW) also went down from S$42,322 in the previous bidding exercise to S$39,000.
In the motorcycle category, premiums went down from a previous high of S$8,001 to S$7,667.
The biggest drop was seen in the open category, which can be used for any type of vehicle except motorcycles, as premiums went down by 11.8 per cent to S$38,801.
Meanwhile, COE prices for goods vehicles and buses also went down by 5.5 per cent to S$36,859.
Car dealers were not surprised by the fall in premiums for both small and large cars, as they cited the Chinese New Year break as a reason for the dip in number of bids submitted.
In Category A, only 2,073 bids were submitted, compared to the previous exercise which drew 2,389 bids.
Similarly, 1,744 bids for larger cars were submitted, compared to 1,831 in the previous exercise.
Mr Raymond Tang, managing director of Yong Lee Seng Motor, said: "The previous bidding window took place right before Chinese New Year and thus many showrooms were closed and agents had gone on breaks."
Similarly, Mr Eddie Loo, managing director Car Times Automobile said they did not see strong demand. "Many potential buyers were busy preparing for the new year, and so a car might not be their priority," he said.
But premiums are expected to rebound at the close of the next exercise. Mr Tang said: "Today's results of a drop in premiums could encourage some customers to renew their COE. If more choose to renew, fewer cars will be scrapped and fewer COEs may be pumped back, causing prices to go up. We could see prices in Category A going up to S$42,000 or S$43,000, while prices in Category B could go up to S$47,000 or S$48,000."
"The premiums in this exercise could possibly be the lowest we'll see in the next couple of months."
NUMBERS AT A GLANCE:
Cat A (Cars up to 1600CC & 97KW): S$36,810 (down from S$40,000)
Cat B (Cars above 1600CC OR 97KW): S$39,000 (down from S$42,322)
Cat C (Goods vehicles and buses): S$36,859 (down from S$39,000)
Cat D (Motorcycles): S$7,667 (down from S$8,001)
Cat E (Open category): S$38,801 (down from S$44,000)
